Correlation Between Kempower Oyj and Gofore Oyj
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By analyzing existing cross correlation between Kempower Oyj and Gofore Oyj, you can compare the effects of market volatilities on Kempower Oyj and Gofore Oyj and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kempower Oyj with a short position of Gofore Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kempower Oyj and Gofore Oyj.
Diversification Opportunities for Kempower Oyj and Gofore Oyj
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kempower and Gofore is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kempower Oyj and Gofore Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gofore Oyj and Kempower Oyj is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kempower Oyj are associated (or correlated) with Gofore Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gofore Oyj has no effect on the direction of Kempower Oyj i.e., Kempower Oyj and Gofore Oyj go up and down completely randomly.
Pair Corralation between Kempower Oyj and Gofore Oyj
Assuming the 90 days trading horizon Kempower Oyj is expected to under-perform the Gofore Oyj. In addition to that, Kempower Oyj is 2.25 times more volatile than Gofore Oyj. It trades about -0.12 of its total potential returns per unit of risk. Gofore Oyj is currently generating about -0.05 per unit of volatility. If you would invest 2,515 in Gofore Oyj on September 3, 2024 and sell it today you would lose (335.00) from holding Gofore Oyj or give up 13.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kempower Oyj vs. Gofore Oyj
Performance |
| Timeline |
| Kempower Oyj |
| Gofore Oyj |
Kempower Oyj and Gofore Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kempower Oyj and Gofore Oyj
The main advantage of trading using opposite Kempower Oyj and Gofore Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kempower Oyj position performs unexpectedly, Gofore Oyj can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gofore Oyj will offset losses from the drop in Gofore Oyj's long position.| Kempower Oyj vs. Oma Saastopankki Oyj | Kempower Oyj vs. Tecnotree Oyj | Kempower Oyj vs. Tokmanni Group Oyj | Kempower Oyj vs. CapMan Oyj B |
| Gofore Oyj vs. Qt Group Oyj | Gofore Oyj vs. Harvia Oyj | Gofore Oyj vs. TietoEVRY Corp | Gofore Oyj vs. Kamux Suomi Oy |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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